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Syndicate level expenses

»Ê¹ÚÌåÓýapp syndicate’s expenses are allowable subject to normal rules on the computation of business profits.

»Ê¹ÚÌåÓýapp main syndicate expenses are those incurred by the managing agent in respect of the active underwriter and claims handling staff, and general administration. »Ê¹ÚÌåÓýappy may be cross-checked against the managing agent’s accounts.

‘Personal expenses�

»Ê¹ÚÌåÓýapp syndicate managing agent will also meet certain expenses on behalf of the members. »Ê¹ÚÌåÓýappse ‘personal expensesâ€� are not generally shown in the underwriting account, but are deducted from the year of account balance on the balance sheet, with details of the deduction shown only in a note to the accounts.

»Ê¹ÚÌåÓýappy are included within the syndicate’s overall trading result by virtue of FA93/S184 (2)(c) for individual members (LLM5050) and FA94/230(2)(b) for corporate members (LLM4140).

Agents� profit commission

Managing agent’s and members� agent’s profit commission are examples of ‘personal expenses�.

»Ê¹ÚÌåÓýappy are both allowable expenses of the trade (LLM4140 and LLM5150). Managing agent’s commission is included within the syndicate’s trading result.

»Ê¹ÚÌåÓýapp profit commission and salary of membersâ€� agents are dealt with as non-syndicate matters for individuals under FA93/S172 (1)(c). An estimated deduction for member’s agentsâ€� fees is generally shown in the notes to the accounts under the heading of ‘personal expensesâ€�.